Low-fare airline SpiceJet plans to issue over 6.4 crore convertible warrants, worth about Rs 125 crore at the current price, to its promoters to raise funds.

The board of directors at a meeting on January 9, decided to issue up to 6,41,69,000 warrants of the face value of Rs 10 each on preferential basis to promoters with the option to apply for and be allotted an equivalent number of equity shares, SpiceJet said in a BSE filing today.

The price is to be determined as per SEBI's regulations on Issue of Capital and Disclosure Requirements, the company said.

The directors decided to conduct a postal ballot to give effect to the warrant issue and other business of empowering the board to borrow in excess of paid-up capital and free reserves, SpiceJet said.

In December, the promoters of SpiceJet increased their stake in the carrier to 53.48 per cent by acquiring 2.8 per cent equity on conversion of warrants worth over Rs 54 crore.